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Investor presentation February 2020 Cautionary statement This - - PowerPoint PPT Presentation

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Investor presentation February 2020 Cautionary statement This presentation may contain statements that contain forward looking statements including, but without limitation, statements relating to the implementation of strategic initiatives,

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Investor presentation

February 2020

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Proprietary & Confidential

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This presentation may contain statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to OnMobile Global Limited’s (OnMobile Global or the Company) future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. OnMobile Global undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.

Cautionary statement

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Proprietary & Confidential

Agenda

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  • History and milestones
  • Product portfolio
  • Strategy FY20
  • Financials Q3 FY20
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The Global Leader in Mobile Entertainment

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Global presence

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1.68 BILLION

CONSUMER REACH

81 CUSTOMERS

ACROSS THE GLOBE

900 MILLION

DIGITAL REACH

100+ MILLION

MONTHLY ACTIVE USERS ACROSS ALL PRODUCTS

10+ MILLION

APP INSTALLS

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Proprietary & Confidential

2000

Incorporated as Onscan Technologies India

2006

Rs 1,300 Mn investment by Deutsche Bank AG, Jade Dragon (Mauritius), and Kings Road Investments (Mauritius) Acquisition of IT Finity, India for Rs 419 Mn

2007

Name changed to OnMobile Global Limited Acquisition of Vox Mobili, France Amount: Rs 1,431 Mn 12: 1 Bonus Issue

  • f shares

2008

Public Issue: 10,900,545 shares, Rs 4,796 Mn @ Rs 440 per share Acquisition of Telisma, France Amount: Rs 801 Mn

2017

Promoter takes active role. François- Charles Sirois takes over as CEO

2016

Buyback of 5,600,000 equity

  • shares. Amount

Spent: Rs 538

  • Mn. Avg. Price:

Rs 96

2014

Voluntary open offer by Promoter, No of Shares:11,900,000. Amount Spent: Rs 476 Mn, Price: Rs 40/- Buyback of 5,800,000 equity shares, Amount Spent: Rs 442 Mn

  • Avg. Price: Rs 76

2013

Acquisition

  • f Live

Wire, USA for Rs 1,007 Mn

2010

Registration under Special Economic Zone, Bangalore Acquisition of assets of Dilithium Technologies, USA for Rs 146 Mn

2009

Purchase of Intellectual Property of Music On, India for Rs 43 Mn

2011

1:1 Bonus Issue

  • f shares

Buyback of 4,000,000 equity shares. Amount Spent: Rs 238 Mn, Avg. Price: Rs 59

History and milestones

2018

Acquisition of Appland AB – a leader in games and kids apps

2019

OnMobile Global Limited renews its contract with Telefónica España

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Proprietary & Confidential

Investor Highlights

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  • Global Reach
  • Dominating market share in Tones business
  • Investment in growth products
  • Emerging turnaround story
  • Solid cash position
  • Healthy cash flow from operations
  • Debt free
  • High dividend yield
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Product portfolio

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Suite of products

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Strategy FY20

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  • Grow Videos
  • Expand Games
  • Leverage Tones
  • Digitize contests
  • Beyond operator wallet
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Proprietary & Confidential

ONMO videos

Entertain yourself

With amazing curated content

  • n

your fingertips, your entertainment quotient will be more than now

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Proprietary & Confidential

Grow Videos

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  • Launched OnMo Kids for a large operator in Italy
  • Launched

a platform for voucher based subscriptions for OTT services provider in Spain

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Proprietary & Confidential

ONMO games

Challenge yourself

With great games to challenge your cognitive abilities, your zeal will be more than now

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Expand Games

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  • Gaming

ecosystem launched for a

  • perator

in Austria

  • Closed a deal for launch of subscription games club

in Venezuela

  • Launched pre-loaded games club in tablets with a

world market leader (Production of 115 K tablets in Q3 FY20)

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Proprietary & Confidential

ONMO tones

Express yourself

With our ONMO tones, you will be able to express yourself and build meaningful relationships, more than now

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Proprietary & Confidential

Leverage Tones

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  • Extended digital RBT footprint by launching RBT 2.0 App

for a large Indian Telco

  • Extended Non-Telco wallet payment integration to all

digital RBT stores by integrating with PWA

  • Crossed 1M active installs of RBT 2.0 App in India
  • First

bundled ringtone with RBT launched with an

  • perator in Spain
  • RBT 2.0 App launched with a large telco in UAE
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Proprietary & Confidential

ONMO contests

Reward yourself

With grand prizes to win from our impressive trivia based quizzes, your enthusiasm will be more than now

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Proprietary & Confidential

Digitize Contests

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  • Launched contests with two leading handset OEMs in

India, 200K+ users engaged monthly

  • 4X growth in digital contests usage through promotion of

digital contests to legacy users

  • Launched 26 theme based contests in Q3
  • Development & integration with multiple ad-networks for
  • ptimized ad inventory
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Financials

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Q3 FY2020 Key Highlights

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Revenue: Gross revenue at INR 1488.4 Mn grew by 0.3% QoQ. Key product segments of Videos and Contests witnessed 4.5% and 19.4% QoQ growth respectively Gross profit margins: Lower on account of higher contract acquisition cost for the quarter. Negating this increase, gross profit margins at 53.5% have remained constant QoQ Manpower cost: Down by 5.3% QoQ. This is after accounting for across the board salary revision from December 2019. Exit headcount for this quarter stood at 702 as against 734 people last quarter Operating Profit: Increase by 25.2% from INR 60.0 Mn in Q2 to INR 75.2 Mn in Q3. This is despite higher contract acquisition cost Profit Before Tax: PBT at INR 98.3 Mn has grown by 38.3% from last quarter. Profit After Tax: Multifold increase in PAT from INR 10.5 Mn in Q2 to INR 65.2 Mn in Q3. Effective Tax Rate is lower from 85.3% in Q2 to 33.7% in Q3 on account of decrease in deferred tax assets Cash balance: Increase in cash balance from INR 2,344.2 Mn to INR 2,525.3 Mn; despite payment of dividend of INR 159.0 Mn. This is on account of better collection from customers which has resulted in improvement of DSO from 155 days in Q2 to 140 days in Q3

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P&L Q3 FY2020

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P&L(INR Mn) Q3 FY20 Q2 FY20 % Growth Gross Revenue 1,488 1,484 0.3% Less Customer acquisition cost as per the new contract (57) (46) 23.0% Net Revenue 1,432 1,438

  • 0.4%

Content 636 633 0.5% Other COGS 58 57 1.4% Gross Profit 737 748

  • 1.4%

Margin (%) 51.5% 52.0% Manpower Cost 390 407

  • 4.1%

Severance cost 9 14

  • 40.1%

Marketing Cost 77 80

  • 4.1%

Other Opex 151 139 8.7% EBITDA 111 107 3.3% Margin (%) 7.7% 7.5% Depreciation 36 47

  • 24.7%

Operating Profit 75 60 25.2% Margin (%) 5.3% 4.2% Other Income 20 22

  • 9.5%

Exchange gain (Loss) 3 (11) nm Profit before Tax 98 71 38.3% Tax 33 61

  • 45.3%

Profit After Tax 65 10 522.1% Margin (%) 4.6% 0.7%

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Proprietary & Confidential

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Total revenue by geography (Q-o-Q)

Q3 FY‘20 Q2 FY‘20

Europe 61% ME&A 15% India 15% Asia 6% Europe 61% ME&A 15% India 16% Asia 5%

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Proprietary & Confidential

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Revenue by products (Q-o-Q)

Q3 FY‘20 Q2 FY‘20

INR Mn

Videos 44% 647 Contest 3% 50 Infotainment 5% 68 Tones 37% 544 Games 12% 174 Videos 46% 678 Contest 4% 60 Infotainment 4% 61 Tones 36% 532 Games 11% 157

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Cash position

24 INR Mn Mar 30, 2018 June 30, 2018 Sept 30, 2018 Dec 31, 2018 Mar 31, 2019 Jun 30, 2019 Sept 30, 2019 Dec 31, 2019 Gross Cash 3,052 3,169 3,486 2,672 2,723 2,510 2,344 2,525 Less: Total Debt

  • Net Cash

3,052 3,169 3,486 2,672 2,723 2,510 2,344 2,525

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Cash flow

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INR Mn Particulars` Q1 FY‘20 Q2 FY‘20 Q3 FY‘20 EBIDTA 71 107 111

  • Operating non cash items adjusted

(4) (2) 8 Operating profit before working capital changes 67 105 119 Working Capital Changes: (Increase)/ Decrease in Trade Receivables (78) (206) 261 Increase/ ( Decrease) in Trade Payables (207) 242 (79) (Increase)/ Decrease in Other assets (14) (310) 163 Increase/ (Decrease) in Other Liabilities 27 101 (95) Cash generated from operations (205) (69) 369 Taxes (Paid)/Refund (27) (69) (54) (Purchase)/ Sale of fixed assets (17) (4) (1) Acquisition of Appland

  • Dividend/Interest income/ Capital Appreciation

37 28 26 Cash generated during the period (213) (114) 340 Other Financing activities

  • Finance cost

(4) (23) (14)

  • Dividend / Tax Paid
  • (33)

(159)

  • Others
  • Fx Impact on Cash balances

4 3 14 Net increase/(decrease) in cash/cash equivalents (213) (166) 181 Opening Cash balance 2,723 2,510 2,344 Closing Cash balance 2,510 2,344 2,525

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Balance sheet

26 INR Mn As at Dec 31st, 2019 As at Sept 30, 2019 Shareholders’ Funds 5,635 5,525 Non-Current Liabilities 80 445 Trade Payables 2,111 2,154 Current Liabilities 998 990 Total Liabilities 8,825 9,114 Fixed Assets 352 372 Goodwill 783 738 Right to use Assets 148 160 Financial Assets 64 63 Deferred Tax Assets 527 553 Non-Current Assets 1,396 1,452 Cash and Cash Equivalents 2,525 2,344 Trade Receivables (Billed + Un-billed) 2,300 2,529 Other Current Assets 730 903 Total Assets 8,825 9,114

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Ratio Analysis – Financial Performance

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Ratio Analysis Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Profit and Loss Export revenue / revenue 78% 81% 83% 84% 83% 84% 85% 84% Cost of Sales / revenue 46% 45% 46% 46% 46% 47% 48% 48% Gross profit / revenue 54% 55% 54% 54% 54% 53% 52% 52% Marketing cost / revenue 3% 4% 6% 7% 6% 5% 6% 5% General and administrative expenses / revenue 14% 12% 12% 13% 13% 12% 10% 11% Aggregate employee costs / revenue 29% 31% 28% 29% 28% 31% 29% 28% Operating profit / revenue 0% 1% 3% 1% 2% 0% 4% 5% Other income / revenue 3% 0% 2% 2% 2% 2% 2% 1% Profit before tax (PBT) / revenue 6% 2% 16% 0% 3% 2% 5% 7% Tax / revenue 3% 2% 3% 1% 2% 1% 4% 2% Effective tax rate - Tax / PBT 49% 91% 20% nm 51% 30% 85% 34% Profit after tax (PAT) / revenue 3% 0% 13%

  • 2%

2% 2% 1% 5% Operating cash flows / revenue 6% 8% 19%

  • 4%

6%

  • 14%
  • 3%

24% Balance sheet Current ratio 2.43 2.46 2.38 1.86 1.82 1.85 1.84 1.79 Day’s sales outstanding (Days) 140 140 151 141 139 143 155 140 Liquid assets / total assets (%) 58% 57% 61% 51% 50% 55% 53% 55% Liquid assets / revenue (%) 3.2 3.1 3.6 2.9 3.1 3.5 3.4 3.4

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Dividend & buyback history

28 (INR Mn) March 15 March 16 March 17 March 18 March 19 Dividend Payout ( Incl. Tax) 197 195 188 190 191 Dividend % 15% 15% 15% 15% 15% Buyback (shares in Mn) 5.8

  • 5.6
  • Buyback amount utilized

442

  • 538
  • Dividend Policy : 75% Dividend payout or 15% Dividend, whichever is higher
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Equity Snapshot

29 Notes: *Closing share price as on 31st December, 2019 ** Shares outstanding, Market Cap, Cash and cash equivalents as on 31st December, 2019 *** Net Debt as on 31st December, 2019

Particulars Details Script code (on NSE) ONMOBILE Share Price (INR)* 31 Shares outstanding (in Mn)** 106 Market Capitalization (INR Mn)** 3,229 Net Debt*** Cash and Cash equivalents (INR Mn)** 2,525

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